As a competitive racing driver with a background in engineering and a passion for high-tech, it’s hardly surprising that I love driving supercars and have already invested in the automotive sector. But you don’t need to have any of my attributes or experience to be passionate about motorsport and curious about investment opportunities in the most prestigious motorsport championship of all – Formula 1.

Investing in something you love is especially alluring, so beware decisions driven more by enthusiasm for the sport itself than by an objective evaluation of the investment risk and potential.

Since the very first Formula 1 World Championship in 1950, motorsport’s pinnacle category for open-wheel single-seaters has expanded from the inaugural 6 races to a massive 24 F1 Grands Prix every year in amazing locations across 5 continents, and all eagerly followed by a global tribe of passionate, loyal fans. It’s a multi-billion dollar industry, and while you can’t invest directly in the teams themselves, you can certainly buy shares in some of the companies involved in it.

The F1 Business Model

The main revenue streams in the F1 business model are broadcasting rights, event hosting fees (including ticket sales) and sponsorship fees. Strong points include its global reach and ability to attract high-profile sponsors.

On the flip side, the lack of diversity in revenue streams makes it vulnerable to economic changes, while the budget cap introduced in 2021 is presenting additional challenges, particularly for the smaller teams.

The F1 Turnaround

Liberty Media has revitalized the sport since completing its acquisition of the Formula One Group in early 2017, breathing new life into what had become an ‘old boys’ club’ for a wealthy niche of motorsport enthusiasts, totally disengaged from the general public. Liberty’s rebranding, new broadcasting management and data-driven marketing strategy have radically expanded and transformed the fanbase. A dynamic social media presence now draws F1 enthusiasts into an immersive experience, with backstage insights and a humanization of drivers and key personnel that was unthinkable when Bernie Ecclestone was at the F1 helm.

The 2019 Netflix docuseries Drive to Survive turbo-charged F1 viewership, ticket sales and sponsorships, dramatically boosting the main income sources for the sport. By the end of that season, Formula 1’s total global TV cumulative audience stood at 1.92 billion, while its social media channels were the fastest growing of all major sports leagues in the world. 2020 was a tough year for everyone, F1 included, with a reduced calendar of 17 races and reduced revenues, but 2021 saw a rebound with a record 22 Grands Prix and healthy income back up to pre-pandemic levels.

Which F1 Stock Can I Invest In?

Formula 1 is in a dynamic phase of development on all fronts with a revamped commercial model, targeted expansion into the US market, and new financial regulations aimed at improving competitive balance and financial stability. It’s an increasingly attractive investment proposition, evidenced by a new wave of institutional investment into the existing teams from a diverse group of capital partners. Direct team investment may not be an option for the individual investor, but there are other ways to buy a slice of the most exciting motorsport championship in the world.

You can purchase shares in Liberty Media Formula One with three different series to choose between:

• Series A (FWONA) comes with voting rights, which is not usually an important factor for the majority of retail investors, but it does provide one vote per share for company affairs such as board of directors’ elections and proposed operational changes, in case you want to have a say in the business.

• Series B shares (FWONB) are unlisted and only available OTC – a more complicated purchase and possibly a riskier investment. 97% of these are held by management and company insiders.

• Series C (FWONK) directly tracks the performance of the Formula One Group and is the best bet for most retail investors. It’s the easiest to buy and has no voting rights so you can sit back on a Sunday afternoon and enjoy the Grand Prix you love without worrying about complex corporate issues.

Another way to get involved is by purchasing stocks that are closely involved with the championship, like car or tyre manufacturers, engineering companies, high-profile sponsors, and other related businesses. Whatever aspect of Formula 1 you consider buying into, it has to be a valid investment in its own right. Due diligence and research are never optional, and even more so when there is an emotional element of personal passion that can influence your strategic choices.

The Future of F1 Investments

There are 24 Grands Prix events on the recently released F1 2025 calendar, with concrete probability that this will increase further to 25 races in 2026. More races translate to more ticket sales and merchandise, more viewership, and more sponsorship opportunities. 

With new cost control regulations aimed to balance competitiveness and commercialization, and a sustainability strategy focused on a 2030 net-zero emission goal, F1 is actively building a long-term future which will see it drive to thrive rather than just survive.